In recent history, Microsoft price increases have been coming thick and fast:

• Dynamics 365 pricing increase by 9-17% in October 2024
• Windows Server 2025 & System Center 2025 are 10% more expensive
• "Price harmonisation" in 2023 raised prices for most products in several countries
• Price increases on most products in Japan and South Korea on 2023
• SQL Server 2022 was 10% more expensive
• There were non-profit price increases in 2022
• Various O365/M365 SKUs increased in March 2022 by up to 25%
• The introduction of CSP NCE increase pay monthly prices by 20% in 2022

And now we have a few more too.
 

Monthly SKUs

All licenses on a pay-Monthly basis on CSP, MCA-E, and Buy Online will increase by 5% from April 1st, 2025. These include:

• Microsoft 365
• Office 365
• Enterprise Mobility + Security
• Windows 365
• Dynamics 365
• Power Platform (Inc. Power BI)

Pay Monthly options that are NOT affected by this include:

• Azure Reserved Instances
• Azure Savings Plans
• Azure Marketplace
• Github

Organisations looking for the flexibility of pay monthly must now pay more…and remember that the move to CSP NCE brought a 20% increase for the pay monthly option already.
 

Power BI

From April 1st, 2025 Power BI pricing is increasing by up to 40%:

• Power BI Pro will be $14 (currently $9.99)
• Power BI Premium Per User will be $24 (currently $20)

Microsoft point out that Power BI hasn’t had a price increase since its introduction in 2015 – but this is quite a jump.

This won’t increase the price of Microsoft/Office 365 E5, so Microsoft are - yet again, reducing the gap between buying lower bundles and point products vs buying the full E5 suite. Much of Microsoft’s ARPU (Average Revenue Per User) growth is linked to E5 (and Copilot) and so increasing E5 adoption is a benefit for shareholders and financial results.
 

Teams Phone

From April 1st, 2025 Teams Phone SKUs are increasing by up to 25%:

• Teams Phone Standard will be $10 (currently $8)
• Teams Phone Frontline will be $5 (currently $4)
• Teams Phone w/ PAYG calling

Calling plans are increasing too by approx. $2 per user per month.

Understand the implications & your options 

If you want more information on how these price increases will impact you – and what you can do to reduce that impact – get in touch with me on [email protected] and/or check out our licensing and contract readiness review here.

See the Microsoft post: 

https://techcommunity.microsoft.com/blog/microsoft_365blog/flexible-billing-for-microsoft-365-copilot-pricing-updates-for-annual-subscripti/4288536